Friday, August 25, 2006

Virgin to call for competition inquiry into UK airports - Industry sectors - Times Online

Virgin to call for competition inquiry into UK airports - Industry sectors - Times Online: "Virgin to call for competition inquiry into UK airports
By Angela Jameson, Industrial Correspondent



VIRGIN ATLANTIC will call today for a Competition Commission inquiry into the British airports market, heaping further pressure on BAA, the beleaguered airports group.
The Times has learnt that Sir Richard Branson�s airline will make the request as part of its submission to the Office of Fair Trading�s airport markets study. Ryanair, which will make public its submission to the OFT today, is also expected to endorse steps towards a break-up of BAA.


Virgin is likely to stop short of calling for a full break-up of the airports operator but is expected to say that the airports market is so complicated that it demands a thorough investigation.
Analysts expect that the airlines will use last week�s disarray at airports to support their case for a break-up of BAA. One industry insider said: �It has been interesting that the three regulated London airports struggled the most. Luton was back to normal much more quickly than Stansted. It reinforces the question of why we need the group at all.�
Other industry sources said that there was already plenty of evidence, before the events of the past week, to support a break-up of BAA.
The Office of Fair Trading began its study into the airports market, which has a turnover of at least �2.6 billion, in June, pointing out that nearly two thirds of UK air passengers start or end their journeys at a BAA airport. Within the London area that figure rises to nine out of ten passengers.
EasyJet is also expected to use its submission to call for a break-up. It has said previously that an inquiry was �long overdue � there are too many cases where the ownership or "